Motorola Inc. (NYSE: MOT) subsidiary Motorola Israel Ltd. will acquire BitBand Ltd., a developer of video content delivery network solutions for service providers, for $10 million. The company's solutions enable the provision of Internet Protocol video-on-demand. BitBand raised $18 million from investors, and has been on the market since 2006.
BitBand was founded in 2000, and currently has 80 employees at its premises in Netanya, the US, and China. Investors include Sequoia Capital, Challenge Fund - Etgar, Aviv Venture Capital, Apax Partners, Portview Communication Partners, and Ascend Technology Partners. Customers include Cisco Systems Inc. (Nasdaq: CSCO), IBM Corporation (NYSE: IBM), and Comverse Technology Inc. (Pink Sheets: CMVT).
BitBand is Motorola Israel's first acquisition, and is intended to enable the company to compete against firms such as Cisco that supply equipment to cable television broadcasters. BitBand's products include Maestro, a platform for managing video servers. Its QualiCTV product is the hardware standard for upgrading viewing quality, by fixing problems such as slow channel change and loss of data due to line breakdowns.
Motorola Israel and BitBand declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on November 12, 2009
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